Comments on: Life Insurance Settlements – Cashing Out At the End of a Policy http://www.efinancialblog.com/life-insurance-settlements-cashing-policy/ America's Financial Security and Life Insurance Blog Fri, 03 Sep 2010 07:32:42 -0500 http://wordpress.org/?v=2.8.1 hourly 1 By: Andrew http://www.efinancialblog.com/life-insurance-settlements-cashing-policy/comment-page-1/#comment-4464 Andrew Fri, 20 Nov 2009 04:50:15 +0000 http://www.efinancialblog.com/?p=1222#comment-4464 I'm all for empowering consumers to convert their Life Insurance policies into a Life cash Settlement when they no longer have a beneficiary who would "benefit." I am also staunchly opposed to the idea of bundling these policies as securities. Let's keep the secondary marketing of these instruments under strict government regulation or we will surely see abuse and manipulation of this common sense practice. I’m all for empowering consumers to convert their Life Insurance policies into a Life cash Settlement when they no longer have a beneficiary who would “benefit.” I am also staunchly opposed to the idea of bundling these policies as securities. Let’s keep the secondary marketing of these instruments under strict government regulation or we will surely see abuse and manipulation of this common sense practice.

]]> By: Marc http://www.efinancialblog.com/life-insurance-settlements-cashing-policy/comment-page-1/#comment-4459 Marc Tue, 17 Nov 2009 22:31:06 +0000 http://www.efinancialblog.com/?p=1222#comment-4459 The life settlement, which can be especially useful for those facing costly medical bills, grew out of "viatical settlements" for terminally ill AIDS patients who did not have sufficient insurance. They paid for their care by selling their insurance policies. Those settlements ended as drugs prolonged the lives of HIV- positive patients. While dying AIDS victims were able to get 30 percent or more of the value of the death benefit, according to the AARP magazine, most life settlements today pay between 15 percent and 25 percent on universal and whole life policies and on term policies that are convertible. Elderly people with health problems can get more. If you're healthy, under 70 and have a long life expectancy, you're not a good candidate for a life settlement. But you need not be ill to seek the cash of a life settlement. If you're over 70 and the policy is paid up, or if you've been paying on it for years, it is as much of an asset as your home. Most people who can no longer afford the premiums let the policies lapse, which is what insurance companies count on. If you need the policy's worth in your lifetime and your heirs don't need the money, a life settlement could be a life saver. The life settlement, which can be especially useful for those facing costly medical bills, grew out of “viatical settlements” for terminally ill AIDS patients who did not have sufficient insurance. They paid for their care by selling their insurance policies. Those settlements ended as drugs prolonged the lives of HIV- positive patients.

While dying AIDS victims were able to get 30 percent or more of the value of the death benefit, according to the AARP magazine, most life settlements today pay between 15 percent and 25 percent on universal and whole life policies and on term policies that are convertible. Elderly people with health problems can get more.

If you’re healthy, under 70 and have a long life expectancy, you’re not a good candidate for a life settlement.

But you need not be ill to seek the cash of a life settlement. If you’re over 70 and the policy is paid up, or if you’ve been paying on it for years, it is as much of an asset as your home. Most people who can no longer afford the premiums let the policies lapse, which is what insurance companies count on. If you need the policy’s worth in your lifetime and your heirs don’t need the money, a life settlement could be a life saver.

]]> By: Felicia http://www.efinancialblog.com/life-insurance-settlements-cashing-policy/comment-page-1/#comment-4458 Felicia Tue, 17 Nov 2009 22:24:52 +0000 http://www.efinancialblog.com/?p=1222#comment-4458 I had no idea that I could surrender my policy and get paid by someone other than my insurance company. It's comforting to know I have that option and can get a different return on my investment while I am alive. I had no idea that I could surrender my policy and get paid by someone other than my insurance company. It’s comforting to know I have that option and can get a different return on my investment while I am alive.

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